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This $2.6B Japanese A.I. Startup Exposes the Language Gap in Today’s LLMs

Sakana AI secured $135 million to develop culturally tailored generative AI for Japan, aiming to expand into defense, manufacturing, and government sectors by 2026.

  • On Nov. 17, Sakana AI announced it closed a ¥20 billion Series B that values the company at $2.65 billion post-money, the company said.
  • Founded in 2023 by former Google and Stability AI researchers Llion Jones, Ren Ito and David Ha, Sakana builds affordable generative models optimized for Japanese language and culture and pursues sovereign AI reflecting national values, the company said.
  • The Series B drew a mix of domestic and global investors, including Mitsubishi UFJ Financial Group, roughly a year after a Series A that raised about ¥30 billion at a $1.5 billion valuation.
  • Sakana will use the funding for R&D and to expand engineering, sales and distribution teams in Japan while pursuing strategic investments and expanding into industrial, manufacturing, government, defense and intelligence sectors in 2026.
  • More broadly, more than half of online content is in English and fewer than 5 percent of 7,000 languages have meaningful online representation, with Sakana joining regional efforts by Krutrim, Mistral AI, and Microsoft earlier this year.
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Techmeme broke the news in California, United States on Sunday, November 16, 2025.
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